BTG Biomass Technology Group B.V.

Overview of the international consortium’s role and activities

Final Seminar, UNDP/GEF Belarus Bioenergy Project22-23 April 2008, Belarus

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Scope of presentation

Consortium composition and focus areas

T.A. services to demo projects

Geographic Information System (GIS) development

Revolving Fund establishment & development of investment projects

Awareness raising & technical training

Broader Renewable Energy (RE) support

Consortium contributions

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Consortium composition (1/2) Consortium composition:

– BTG Biomass Technology Group BV (www.btgworld.com), NL– LEV LandesEnergieVerein Steiermark (www.lev.at), Austria – Eco Ltd. (www.ecoharmony.com), United Kingdom

Consortium objectives: providing support– To offer European experience and expertise to help ensure the successful

implementation of the project; and– To facilitate twinning activities between Belarus and Austria.

Focus areas:1. Technical advisory services to demo projects2. Geographic Information System development3. Revolving fund establishment & development of inv. projects 4. Development of a replication (scaling-up) plan5. Awareness raising and technical training 6. Broader support in the renewable energy field

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Consortium composition (2/2)

Org. Name Role/contribution BTG John Vos Awareness raising expert / Programme Manager BTG René Venendaal Bioenergy portfolio financing expert BTG Michaela Remrova Co-organiser and guide AT/CZ study tour LEV Peter Schuster Forest fuel supply expert LEV Norbert Wildbacher Biomass boiler expert LEV Heinz Gallaun Geographic Information System expert LEV Franz Promitzer Biomass district heating systems expert ECO Grant Ballard-Tremeer Feasibility Studies expert ECO Agnes Hegedus Revolving Fund expert ECO Susan Legro Bioenergy financing expert

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T.A. services to demo projects (1/3)

Two LEV experts: Messrs. Schuster & Wildbacher

Main T.A. activities:– Four missions to Belarus between June 2004 and end 2007– Mission activity reports and supporting documents including

technical discussions, remarks & recommendations – Further technical support through email, phone calls etc.– Lectures at the project workshops and seminars– Organizing/supporting/participating in study tours

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T.A. services to demo projects (2/3)

LEV expert Schuster provided expertise to help assure the successful preparation and implementation of forest fuel supply demo projects

Vileika forestry enterprise (biomass processing and supply to CHP)

Forest wood chips for use at Vileika

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T.A. services to demo projects (3/3)

LEV expert Wildbacher provided expertise to help assure the successful preparation and implementation of boiler demonstration projects:– 1. Boiler house of private company Volat-1 (2 times 1MWth)– 2. CHP 2.5MWel of JSC Mostovdrev (conversion to CHP)– 3. CHP 2.4 MWel of Minskenergo in Vileika (new unit)– 4. CHP 1.5 MWel of Vitebskenergo BelGRES, Orekhovsk (new unit)

Volat-1, Uzda Mostovdrev Vileika

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Geographic Information System (GIS) development (1/2) A GIS system is a software system which combines

geographical information about the location of forest resources, sources of wood residues, existing boiler houses, potential biofuel users, and available infrastructure (roads, railways, etc.)

The GIS system is a tool for project developers and decision makers, providing information necessary for energy planning, identifying fuel switch project opportunities etc.

The development of the GIS system was done by local experts. LEV expert Mr. Gallaun assisted the local team on the construction of the GIS system, and on the application of the GIS to the biofuel planning process.

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Geographic Information System (GIS) development (2/2)

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Revolving Fund establishment & development of investment projects (1/3) The project established a

Revolving Fund, enabling investments in follow-up bioenergy and biofuel projects.

The fund was initially filled by contributions from UNDP/GEF and the Belarus Government (USD 1.54 Million each)

The fund would be replenished by repayments from the demo project owners and by funding from the Committee on Energy Efficiency.

Revolving

Fund

Belarus banking system

3-6% interest rate for USD

loans

10-11% interest rate for USD

loans

7,5% interest rate for national

currency loans

12-15% interest rate for national

currency loans

Grace period up to 1 year

Grace period subject to

negotiations

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Revolving Fund establishment & development of investment projects (2/3)

ECO experts Mr. Ballard-Tremeer, Ms. Hegedus and Ms. Legro

The initial activities of the ECO experts covered:– Selection and development a portfolio of bioenergy projects– Financing of a portfolio of bioenergy projects

Specific activities 2004-2006:– Preparation of a briefing note on Financing Biomass Projects (2004)– Preparation of a briefing note on the judicial status of Revolving Funds

set-up in various Central European and Baltic countries (Sept. 2005)– Review of 10 detailed energy audits and feasibility studies prepared by

the local consultant BelTEI (Belarusian Thermal Engineering Institute) – Assisting BelTEI improving the feasibility analyses– Using the BelTEI reports as input for business plan development– Support to the development of the National Biomass Energy Strategy

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Revolving Fund establishment & development of investment projects (3/3) Later, additional tasks for the ECO experts were agreed:

– Mapping of potential contributors (donors) to the revolving fund– Preparation of formal project documents (PIN, PDD) for biomass-based

carbon emission reduction projects

Specific activities 2006-2008:– Research on funding patterns and requirements for relevant bilateral

and multilateral donors; preparation of donor profiles– Preparation of five investor profiles – Preparing bankable bioenergy investment project proposals– Follow-up with promising potential investors, including carbon financiers– TA on the Voluntary Emission Reductions market– Lectures on project seminars in December 2007 and April 2008

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Awareness raising & training (1/3)

Objective: increase the awareness and knowledge on bioenergy in Belarus, and assure dissemination of the project’s results among relevant Belarusian target groups

The main services provided by the consortium (in particular BTG expert John Vos) in this area concerned:– Development of training materials– Organisation of study tours– Giving lectures at project seminars and training courses – Production of promotion materials– Special attention to carbon project development issues

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Awareness raising & training (2/3)

Wood Energy Brochure

Best Practice Guidebook– Volume A: Biomass combustion – Volume B: Forest fuel supply

Fact sheets / Briefing notes– Schemes of innovative biomass projects funding approaches (July 2004)– Information about the judicial status of various Revolving Funds (Sept 2005)– Financial Support for Bioelectricity in the EU (February 2006)– Developing biomass-based JI projects in Belarus (February 2006)– The Forest Fuel Market in Finland (November 2006)– The Forest Woodchip Market in Austria (December 2006)– Biomass ash utilization (June 2007)

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Awareness raising & training (3/3)

Four study tours– October 2004 (AT): wood harvesting methods – April 2005 (AT/CZ): biomass combustion equipment– October 2005 (FIN): training course on technologies and logistics of biofuel

production (classroom sessions + site visits)– April 2006 (SW): forest biomass production / biomass combustion for district

heating and cogeneration (CHP)

Twelve (12) lectures at project seminars

Project promotion at international conferences– Central European Biomass Conference, Graz (AT), January 2005– 14th European Biomass Conference, Paris (F), October 2005– Central European Biomass Conference, Graz (AT), January 2008

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Broader Renew. Energy support

Other consortium inputs:– Project management: coordination the team of international experts;

preparation of quarterly progress reports (total of 16), etc. – Information exchange and assistance on renewable energy (RE) policy

development, with special attention to bioenergy policy and on bioenergy system implementation, with special attention to biomass district heating.

– A Twinning Agreement was negotiated between RUP Belinvestenergoberezhenie and LandesEnergieVerein (LEV) Steiermark, formalising international co-operation, knowledge transfer and information exchange on renewable energy issues. The Agreement was signed in July 2005

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Consortium contributions (1/2)

Supporting the work of the local project team and stakeholders

Focused technical assistance in pre-identified areas

Bringing the local project team in contact with leading European equipment manufacturers

Showcasing policies, plants and practices in use in leading bioenergy countries in Europe

Flexible approach to accommodate changes in the needs and demands for T.A. on specific issues (e.g. carbon project development issues)

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Consortium contributions (2/2) 18 person-months of technical assistance

T.A. on biomass boiler and forest fuel supply demo projects

Review of 10 detailed energy audits and feasibility studies

Targeted assistance on the development of carbon credit projects

Preparation of carbon credits paperwork (PIN, PDD)

Four study tours to leading EU bio-energy countries

Twelve presentations during project seminars and training courses

More than 20 T.A. missions to Belarus and elsewhere

1 wood energy brochure, 2 best practice guidebooks, and 7 fact sheets / briefing notes

Project promotion at 3 leading international bioenergy conferences

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The end

Thank you !

Contact: John Vos

BTG Biomass Technology Group BV

P.O. Box 217, 7500 AE Enschede, The Netherlands

Tel. +31-53-4861186; Email: vos@btgworld.com